Edelweiss Financial Services Limited (EFSL), on September 28, 2022 announced the public issue of secured redeemable non-convertible debentures (NCDs) worth Rs. 400 crore.
They carry a face value of Rs. 1,000 each, amounting to Rs. 200 crore (base issue), with an option to retain over-subscription up to another Rs. 200 crore, aggregating to a total of Rs. 400 crore (tranche II issue).
The tranche II issue opens on October 3, 2022 and closes on October 17. There is an option of early closure, too, Edelweiss announced in a press release.
There are 10 series of NCDs carrying fixed coupon with tenures of 24, 36, 60 and 120 months, respectively, with annual, monthly and cumulative interest option.The effective annual yield for NCDs ranges from 8.84-10.09 per cent, Edelweiss said in press release.
Edelweiss said that the allotment will be made on a first -come- first-serve-basis, based on the date of upload of each application into the electronic system of the stock exchange, in each portion subject to the allocation ratio.The trading will be in dematerialised form only, the statement said.
According to Edelweiss, at least 75 per cent of the funds raised through this issue will be used for the purpose of repayment and/or prepayment of interest and principal of existing borrowings of the company.
The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in the issue. This will be done to ensure compliance with the Securities and Exchange Board of India (Issue And Listing Of Non-Convertible Securities) Regulations, 2021, the statement said.
Edelweiss further said that an additional incentive of 0.20 per cent per annum will be offered for all category of investors in the proposed issue, who are also holders of NCD(s)/Bond(s) previously issued by Edelweiss or Edelweiss group companies.
The NCDs proposed to be issued under this tranche II issue have been rated “CRISIL AA-/Negative” and “ACUITE AA-/Negative”.
The NCDs will be listed on BSE Limited to provide liquidity to the investors, Edelweiss further said in the statement
